NEW YORK, Jul 14 (SW) - After a month's worth of speculation, the United States Soccer Federation (USSF) decided on Friday not to renew the contract of national team coach Bruce Arena.

Arena, who took over from the sacked Steve Sampson after the USA's 1998 World Cup ouster in France, led the USA to a shock quarter-final appearance in 2002 and twice won the Gold Cup, but was heavily criticized in the States for his tactical plans after the Americans were knocked out at the group stage in Germany.

USSF President Sunil Galati said on Friday, "I'm not going to say we felt the need to change directions. The direction Bruce has set is very, very positive. We didn't get the results we wanted in the World Cup, but Bruce didn't become a bad coach in three games with a few bad bounces of the ball."

Arena, who won five national college championships at the University of Virginia and twice won the MLS Cup with DC United prior to taking over for the USA, issued a statement of gratitude and appreciation.

"I would like to thank the players, coaches and staff who have been with the program over the last eight years," Arena said. "Their tireless effort has helped transform the national team program into something we can all be proud of, and I am extremely grateful for their commitment. I have thoroughly enjoyed this experience, and I would like to thank U.S. Soccer for the opportunity and their support throughout my tenure. I am proud of how far the organization has come over the last eight years, and I am extremely optimistic about the future of the sport in our country."

Arena's contract expires at the end of 2006 and attention now shifts to finding a replacement. As a result, Jürgen Klinsmann's name has come up in many soccer circles in the USA as the favorite to take over, but Galati urged caution over this speculation.

Gulati said he hasn't spoken to the German since January, but that he could potentially be a candidate for the post.